The lacklustre after-hours share price performance of Nvidia has been attributed to its significant Artificial Intelligence (AI)- centric data centre revenue, which came in below expectations at US$41 billion, compared to analysts’ expectations of US$41.3 billion.
Year-on-year growth in data centre revenue has continued to decelerate, easing from a staggering 155% in Q2 2024 to 56% in Q2 2025.
Despite the Q2 slowdown in data centre revenue growth, Nvidia has issued a positive outlook on its data centre business segment during the earnings call. It anticipates a US$3 to $4 trillion AI infrastructure spend by the end of the decade, presenting long-term growth opportunities. Also, Nvidia is on track to achieve over US$20 billion in sovereign AI revenue in 2025.
In addition, Nvidia is preparing for the next generation of graphics processing units (GPUs) with the Rubin platform that is expected to ramp up in production in the latter part of 2025.
Lastly, based on a technical analysis standpoint, the intra-session drop of -5.3% seen in Nvidia in the after-hours session upon the release of its Q2 earnings has managed to stall at its medium-term ascending channel support in place since 7 April 2025 low, and came close to its 50-day moving average (see Fig. 2).
Positive technical indicators, combined with upbeat guidance from Nvidia’s data centre segment, are expected to support its share price, potentially creating a reinforcing effect on the broader Nasdaq 100.
